Niva Bupa Health Insurance Company (NIVABUPA) Q3 24/25 earnings summary

Executive summary

• Q3 FY25 and 9M'FY2025 were marked by significant regulatory-driven accounting transitions, impacting reported numbers but not underlying business fundamentals or economic value.

• Gross Written Premium (GWP) for 9M'FY2025 reached ₹4,683.6 crore, up from ₹3,848.1 crore in 9M'FY2024, reflecting strong growth.

• Profit after tax for nine months was ₹7.4 crore (Indian GAAP) and ₹119.5 crore (IFRS), with IFRS considered the more accurate reflection of business value.

• Retail health market share increased to 9.6% from 9% YoY, with GWP rising to ₹3,136.0 crore.

• Unaudited financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board and auditors, with an unmodified conclusion issued.

Financial highlights

• Net earned premium grew 20% YoY to INR 3,361 crore for the nine months.

• Net Written Premium for 9M'FY2025 was ₹3,697.3 crore, up from ₹3,039.0 crore in 9M'FY2024.

• IFRS cash for Q3 more than tripled YoY to INR 260 crore.

• Investment yield for the year is 7.4% with AUM at ₹7,310.7 crore.

• Solvency ratio stands at 3.03, well above the statutory minimum of 1.50.

Outlook and guidance

• Management expects to meet the glide path for expense of management as approved by the board and regulator.

• Steady-state combined ratio on IFRS expected at 97-98%, supporting high-teens ROE.

• Expense ratio targeted to reach 36% by next financial year, driven by scale, technology, and channel/product mix.

• Long-term products are now accounted for on a 1/n basis as mandated by IRDAI from October 1, 2024, impacting comparability.

• Financial results for the quarter are not indicative of full-year performance due to industry seasonality.